Australia is proudly leading the world when it comes to rooftop solar. More than 4 million homes—about one in three—now sport solar panels, soaking up the sun and turning it into clean electricity. But as the sun sets, so does solar production. That’s where home batteries step in.
Why Batteries Are the Next Big Thing
Home batteries let you store the solar energy your panels produce during the day, and use it when the sun’s not shining—like during peak evening hours when electricity from the grid costs more. This means lower power bills and less reliance on fossil fuels.
For the average household, pairing solar with a battery can lead to savings of up to $2300 a year. That’s a significant bump from the $1500 saved with solar alone.
Yet only about 8% of solar-powered homes have added a battery so far. That’s a missed opportunity—but it also shows just how much room there is to grow. According to the Climate Council, if the right policies are put in place, two million Aussie homes and businesses could be sporting batteries by 2030. That could save the country more than $4 billion a year on electricity bills.
So, What Do These Things Cost?
Battery prices are dropping fast. A small 5kWh unit starts at about $4000, while a typical system for an Aussie home ranges between $10,000 to $13,000. Thanks to falling lithium prices and economies of scale, the return on investment is improving too.
Back in 2016, the average payback time for a battery was a daunting 19 years. Fast forward to 2024, and it’s down to just over 8 years—and continuing to drop. Most people live in their homes long enough to see the savings add up.
The government is lending a hand, too. The Cheaper Home Batteries Program can slash around 30% off the upfront cost, cutting payback times even further. Plus, with greater demand, prices could fall more. It’s a win-win.
Not Everyone Can Install One—But There Are Alternatives
Renters, apartment dwellers and people on tight budgets often find batteries out of reach. That’s where community batteries come in. These shared systems let more Aussies enjoy the benefits of stored solar power. There’s also a push for solar and battery installations in social housing, and for rental property owners to get on board.
Meet the Virtual Power Plant (VPP)
Ever heard of a virtual power plant? It’s not as sci-fi as it sounds. VPPs link up home batteries to create a sort of mega-battery, supplying energy back to the grid during peak demand. By joining a VPP, you could earn money by selling your stored solar at higher prices, while helping to stabilise the grid.
Different VPP providers offer different terms—like how much control they have over your battery and what they pay you for exported power. So it pays to compare.
If done right, coordinated battery use through VPPs could save the country a massive $4.1 billion in infrastructure costs—and help drive down power prices for everyone.
Are Home Batteries Safe?
Battery safety’s been in the spotlight lately, with media stories about fires involving e-scooters, bikes, and even some EVs. But the actual risk is low—EVs are about 20 times less likely to catch fire than petrol cars. Since 2021, there have been just eight reported EV battery fires in Australia.
Home batteries are strictly regulated. The Clean Energy Council approves battery models and all installations must be done by licensed sparkies. Installations under the Cheaper Home Batteries Program also get random safety audits.
However, some cheaper imported products, especially those used in e-mobility devices, are less regulated. The government is working on a national approach to battery safety, and NSW is leading the way with new battery stewardship laws.
Batteries: Made Overseas, Powered by Aussie Minerals
Most home batteries come from China, the US, or Europe. Strangely enough, even though Australia is the world’s biggest lithium producer, we don’t have a large battery manufacturing industry—yet.
But things are changing. The National Battery Strategy and the $523 million Battery Breakthrough Initiative are aiming to kick-start local manufacturing. Companies like Energy Renaissance in NSW are already producing commercial-grade batteries on Aussie soil.
What About the Environment?
Batteries rely on critical minerals like lithium and cobalt, and mining these does have environmental costs. But compared to fossil fuels, it’s a far greener deal. Fossil fuel extraction produces vastly more pollution and waste—around 1500 million tonnes a year globally, versus a projected 28 million tonnes of minerals needed by 2040 for renewables.
Plus, battery materials can be recycled. About 95% of what’s in lithium-ion batteries is recyclable—but right now, only 10% actually are. That’s a missed opportunity. The good news? Efforts are underway to ramp up battery recycling in Australia, including a pilot program by the CSIRO and new recycling schemes in NSW.
Making Batteries Responsibly
It’s not just about the environment. Many of the minerals used in batteries come from regions with poor labour conditions. That’s why Australia joined the Sustainable Critical Minerals Alliance—a global pact to ensure responsible sourcing and ethical mining. Locally, this also means engaging with First Nations communities and earning their consent before mining projects go ahead.
Can My EV Battery Power My Home?
In short—yes, with the right tech. EVs have much larger batteries than home units, and new vehicle-to-grid (V2G) technology can turn your car into a mobile power station.
Early adopters are already making up to $1000 a year selling energy back into the grid, on top of fuel savings of around $2000. While V2G is still rolling out, a national standard adopted in late 2024 is paving the way for broader use. South Australia’s ahead of the game, treating V2G the same as home batteries and offering clear guidance for EV owners keen to plug in.
Final Thoughts
From powering homes and saving money, to cutting emissions and even turning your car into a cash-generating battery, the future of solar and battery tech in Australia is bright. Whether you're looking to invest in your own system or just want to know what’s next, one thing’s clear: batteries are charging up to play a huge role in how we power our lives.
Article information source: Climate Council - Home batteries in Australia explained